Who can choose PLSO
Tier 1Tier 4Tier 6
You're eligible for an unreduced service retirement annuity. Grandfathered members also can't be DROP participants.
Handbook pp. 24, 26, 29, 31
Tier 2Tier 3Tier 5
You're eligible for service retirement and your age plus years of service total at least 90. This is the "Rule of 90". It's separate from the Rule of 80 for a full benefit.
Handbook pp. 27, 28, 30
Not sure which group you're in? Find your TRS tier; for when an unreduced annuity starts in each tier, see the Rule of 80. Members retiring under the Proportionate Retirement Program can't choose PLSO. If you take an early-age (reduced) retirement, your PLSO is figured from the reduced annuity.
TRS's own example: a $2,662 standard annuity
From TRS's retirement presentation: 23 years of service and a $60,389 average salary (the average retiree in 2024). TRS doesn't say the member's age, and age changes the cut.
(12-month PLSO)
(24-month PLSO)
(36-month PLSO)
Break-even = cash received ÷ monthly cut. It ignores taxes, investment returns and future COLAs, which are figured on the smaller check.
Your break-even
Use the numbers from your TRS retirement estimate. TRS includes PLSO amounts in every estimate for eligible members, and the MyTRS calculator shows them too.
How TRS pays it
- 12 months: paid with your first monthly payment.
- 24 months: paid in one or two annual payments.
- 36 months: paid in one, two or three annual payments.
- Later payments come on the anniversary of the first one, with no interest. You can ask TRS to speed them up.
You choose PLSO on TRS form 30P, the Partial Lump Sum Option Election, and you can only choose it when you retire. It works with the standard annuity or any of the payment options.
Things to weigh
- It's permanent. The smaller check is for life, and a survivor option is based on it too.
- Future COLAs shrink. If the Legislature passes a cost-of-living increase, it's usually a percentage of your (smaller) annuity.
- Taxes. The cash is taxable unless you roll the eligible part into another retirement plan. See taxes on your TRS pension.
- Your health and family history. The longer you live past the break-even point, the more the full monthly check would have paid.
Questions
What is the TRS Partial Lump Sum Option?
PLSO lets you take 12, 24 or 36 months of your standard annuity as cash when you retire. In exchange, your monthly pension is permanently smaller. You can only choose it at service retirement.
Who is eligible for PLSO?
Grandfathered members (Tiers 1, 4 and 6) are eligible if they qualify for an unreduced service retirement annuity. Tiers 2, 3 and 5 need their age plus years of service to total at least 90. No one retiring under the Proportionate Retirement Program can choose PLSO.
How much does PLSO reduce my monthly pension?
TRS works out the reduction when you retire, and it depends on your age. In TRS's own example, 12 months of PLSO cut a $2,662 monthly benefit by $248, about 9%.
Is the PLSO taxable?
Yes, it's taxable income, but you can roll the eligible part into another eligible retirement plan. TRS's Special Tax Notice explains the options; a tax advisor can help.
Source: TRS Benefits Handbook, September 2025, pp. 24-31, 37. Worked example: TRS K-12 Ready to Retire presentation (FY27), slides 21 and 23. Last reviewed .